This week's latest trends and insights in the digital asset market from our asset management team.
Market Commentary
Following the 50 basis point rate cut by the U.S. Federal Reserve, the price of Bitcoin experienced an immediate surge, now sitting above US$63,000 to close out the week. With an aggressive start to the rate cut cycle by the Fed, analysts are predicting more favourable conditions for risky assets such as cryptocurrencies, expecting the total market to rise in Q4. Prior to the cuts, global digital asset investment products rebounded with US$436 million in net inflows led by Bitcoin, with Bitcoin ETFs logging the highest daily inflows in nearly two months. The US-based Ethereum ETFs however continued to struggle, experiencing weekly outflows of US$19 million.
Blockchain analytics firm Arkham Intelligence, recently revealed that the Kingdom of Bhutan currently ranks fourth globally among government holdings of Bitcoin, with 13,000 BTC, worth approximately US$750 million. Accounting for nearly one-third of the nation’s GDP and the fourth-largest state-owned stash, it is the second nation after El Salvador to officially hold BTC. The country’s involvement in cryptocurrency mining dates as far back as 2019, utilising its rich hydroelectric power to fuel green mining operations. These mines are likely related to mining giant Bitdeer, establishing operations in Southeast Asia and Bhutan’s mining capacity after raising over US$500 million for the venture. This sits under the custody of Bhutan’s state investment wing, Druk Holding and Investment (DHI), who focus on technology-driven investment strategies for the nation, with digital assets as one of the primary focus points.
BIS Project Agora gains 41 participants to advance unified ledger applications. In efforts to address structural inefficiencies with the existing global payments infrastructure, BIS is developing a unified ledger concept with central banks and private-sector participants. Now progressing to the design stage, the project is exploring how tokenised commercial bank deposits can be interoperable with tokenised CBDCs using a single platform to make cross-border payments in a more cost-effective, transparent, accessible and faster manner.
CRYPTO TOP 20 7 DAY PRICE CHANGE
*All figures throughout are in USD unless otherwise specified
Market Updates
- Fed cuts interest rates by 50 basis points, Bitcoin briefly hits $61K before selloff
- Bitcoin mining profitability remains at all-time lows as prices fall, hashrate rises, JPMorgan says
- Bitcoin leads global crypto investment products’ $436 million rebound as Ethereum funds struggle: CoinShares
- US spot Bitcoin ETFs log highest daily inflows in nearly two months as BTC challenges $60,000
- Michael Saylor’s MicroStrategy purchased 18.3K more Bitcoins for $1.1B
- Michael Saylor’s MicroStrategy plans another $700M convertible note issuance
- Tether-issued stablecoin USDT’s market share grows to 75% as market cap tops $118B
- Circle is launching USDC on Sui, marking its 15th network integration
- Bernstein says DeFi yields are set for a comeback amid likely US rate cuts
- Latin American crypto exchange Ripio unveils DeFi credit card with Visa
- Tether hires PayPal governments affairs ace as U.S. scrutiny unresolved
- Tune.FM, music streaming project on Hedera blockchain, gets $50M capital commitment
- Coinbase’s version of wrapped Bitcoin, ‘cbBTC’, goes live
- Coinbase’s Base layer 2 shatters transaction records with over 4.5 million in a single day
- WeWork founder’s climate firm refunds crypto token holders after failed launch: Forbes
- Stablecoin giant Circle is moving its headquarters to New York City
- Donald Trump-backed World Liberty Financial debuts plans to sell WLFI token
- BitGo unveils token management service for crypto foundations
- Worldcoin’s World IDs make their way to Solana
- DuckDuckGo ranks Etherscan phishing websites in top results
- Norway town campaigns to close Bitcoin mine, electricity costs jump 20%
The Shift List
- Bhutan, tiny country with $3B GDP, holds over $780M in Bitcoin
- DBS to launch crypto options and structured notes for institutions
- Stablecoins increasingly used for savings, payments in emerging countries, but crypto trading still leads: Report
- Jamie Dimon says JPMorgan Chase is ‘probably one the bigger users of blockchain’
- Cash is still king, consumers would prefer to use money over CBDCs: Deutsche Bank
- Google Cloud releases Ethereum-compatible RPC service
- Louisiana takes first crypto payment over Bitcoin Lightning
- MoneyGram and Stellar join CEX.io for global crypto cash conversions
- Linus debuts decentralised foundation with Hedera and 100+ members
Tinkering with Tokenisation
- Tokenised real-world assets (excluding stablecons) market value hits over $12B: Binance Research
- Australia’s RBA to prioritise wholesale CBDC work over retail
- OMFIF survey respondents believe substantial level of tokenisation is still three years away
- Binance Labs invests in OpenEden
- Standard Chartered starts custody services for digital assets in the UAE
- 41 firms join BIS Project Agora to advance unified ledger applications
- UK finance, member banks see benefits during experimental phase of a tokenisation, CBDC platform
- Circle partners with Sony’s blockchain lab on USDC expansion
- Northern Trust launches carbon ecosystem using blockchain
- UAE unveils digital exchange Finstreet led by ex-SIX exec Thomas Zeeb
- Janus Henderson follows TradFi rivals into tokenised fund space
- Centrifuge and Anemony partner with Archax to list liquid treasury token
- Ample FinTech partners with AUDC with central bank pilot ‘Project DESFT’, exploring multiple digital currency interoperability in programmable cross-border payments
- ParaFi Capital to tokenise $1.2B fund on Securitize
- USDM rating upgraded to A- from B+ by stablecoin rating agency bluechip
- Matrixdock launches gold token XAUm, accelerating the process of tokenising diverse RWAs
Macro and Regulatory Environment
- Powell pitches 50 bps rate cut to support ‘strength of the economy and the labor market’
- U.S. Republican lawmakers say crypto legislation not yet off the table for this year
- In letter to Gensler, Republicans urge SEC to clarify how it treats crypto airdrops
- Digital Chamber urges US crypto users to support new NFT bill
- Sen. Elizabeth Warren’s pro-crypto opponent, John Deaton, has a plan to beat her
- El Salvador president Nayib Bukele to present debt-free budget for 2025
- CZ set to be released from prison on September 29
- Sam Bankman-Fried files appeal in fraud, conspiracy case
- Ex-SEC officials to speak at hearing on ‘politicised approach’ to crypto
- Kalshi lists long-sought election contracts after beating CFTC in court
- Kraken seeks jury trial in SEC lawsuit, presents defense arguments
- English High Court rules Tether’s USDT stablecoin counts as pro
- Spanish crypto exchange Bit2Me obtains license in Argentina as a Virtual Asset Service Provider
- SEC places heavier scrutiny on Binance’s token listing, trading process, in proposed amended complaint
- Days before opening, Flyfish Club settles with SEC for $750K
- Former Celsius CEO Mashinsky seeks testimony from six witnesses as he faces 115-year prison sentence
- Bybit bags provisional crypto license from Dubai regulator
- US lawmakers urge top crypto ATM operators to tackle fraud
About DigitalX
DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.
Disclaimer:
The information in this document is prepared by DigitalX Asset Management Pty Ltd (ACN 629 653 121) (DigitalX).
DigitalX is a corporate authorised representative (CAR) (CAR No. 1270748) of Boutique Capital Pty Ltd (AFSL 508011) and True Oak Investments Ltd (AFSL 238184). Boutique Capital is the Trustee of the DigitalX Fund and the DigitalX Bitcoin Fund. True Oak Investments is the Trustee of the DigitalX Asset Reference Token Fund (DxART). All three funds are open to wholesale investors only.
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The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. Past performance is not indicative of future performance.